PayPal has signed a deal with OpenAI that will make its digital wallet the first payments option embedded inside ChatGPT, according to CNBC.
The agreement, which was completed over the weekend but only announced on Tuesday, will let both buyers and sellers work directly with ChatGPT starting next year. PayPal has hundreds of millions of account holders, and they will be able to click a simple "Buy with PayPal" button inside what is likely the biggest AI platform right now.
At the same time, merchants will be able to list their inventory and rely on the payment giant's processing without having to sign separate contracts with OpenAI.
The Paypal CEO described the integration as a new shopping experience: users can find products with a personal-assistant style AI and trust their usual payment methods. Funds can be pulled from linked bank accounts, cards or stored balances.
Numbers behind deal
ChatGPT has already tested integrations with Shopify, Etsy and Walmart merchants, and now PayPal is trying to become the financial backbone of that ecosystem. With over 700 million users every week, ChatGPT is much bigger than most traditional retail channels.
The PYPL stock price jumped on the U.S. premarket after the OpenAI announcement, reaching $80.45. That is a 14.52% increase and the highest price since early February. The move is equivalent to adding almost $13 billion in market value overnight, taking PayPal's capitalization from about $77.5 billion at Monday's close to just over $88 billion in premarket prints.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team